When you’re thinking of investing in oilfield services stocks the first segment that comes to mind is that of drilling companies. Buying stocks of fracking companies and drilling companies pretty much offer a lower risk exposure to the energy sector compared to oil and gas producers. Drilling companies operate a fleet of drilling rigs used to punch holes into conventional reservoirs or tight formations that allow the extraction of oil or natural gas.

Many of Canada’s major drilling companies have a history of growth, both internally and through strategic acquisitions. Every year more than 11,000 wells are drilled and completed … Continue Reading

The onset of horizontal drilling and multi-stage fracing has been a major driver of unconventional resource development. Fracking is a technique used to release oil and gas from reservoir rock formations by sending water and sand down a well at ultra-high pressure. The pressurized fluid fractures the formation rock creating pathways for trapped oil and gas to get to the well.

The fracking companies have become a large if not the largest part of the oilfield services sector. The shale revolution which started a few years ago has seen the horizontal rig count climb to record levels; more than … Continue Reading

Hydraulic fracturing, also known as fraccing, has revolutionized the oil and gas industry. The process consists of freeing oil and gas from shale rock deposits by injecting water combined with additives under high pressure into the ground. A horizontal well is basically drilled into a geological formation and completed by multi-stage fracturing (fracking) in order to crack open the shale rocks.

This revolution gave birth to a multi-billion dollar market segment in oilfield services for fluid handling and treatment.

Fracking a well involves anywhere from 2 to 6 million gallons water. Prior to completing a well you need to transport … Continue Reading

Canada’s oil sands are regularly attacked by environmentalists, politicians and movie stars. But whether you like it or not, the 170 billion barrels of oil sands reserves can only be ignored at your own portfolio’s peril.

There’s a lot of money to be made from the oil sands. That’s because there’s a lot of money invested in the sector – $20 billion in 2012 according to CAPP forecasts, up from $19 billion in 2011.

Investing in drilling and energy services companies is a great way to expose a portfolio to the energy sector. It provides your portfolio with a broad exposure to the oil and gas commodity sector minus the risk producers and explorers have to deal with. Emerging North American oil resource plays are fuelling the industry momentum on the back of strong oil prices. A momentum that will potentially carry over into 2012 as the focus shifts away from dry gas into liquids in the US and Canada. The economics associated with oil and liquids rich plays are very attractive particularly when … Continue Reading